THE architect of the most radical reforms of UK boardrooms in a generation has been named as the new chairman of bank Alliance & Leicester. Sir Derek Higgs will assume the chairmanship on October 28 and replace John Windeler who announced his intention to leave A&L at the annual meeting of the company in May. The company employs around 2,000 people in its commercial banking operation in Merseyside. The 61-year-old accountant gained fame in the City when he was appointed by Chancellor Gordon Brown in 2002 to review company boards and suggest reforms. The conclusions of the Higgs report aimed to avoid a repeat of Enron-style scandals by putting more focus on those directors without day-to-day responsibilities. The blueprint stressed the need for non-executive directors to have regular meetings with shareholders and report back to other non-executives. Sir Derek also urged the recruitment of more directors among women and ethnic minorities to break up an old-boy network of white males nearing retirement age. But his report initially proved divisive, with polls showing four-fifths of chairmen of FTSE 100 companies felt the rules would undermine their ability to run an effective, unified board. The recommendations of Sir Derek were eventually enshrined in a revised Combined Code on Corporate Governance in 2003. Peter Barton, deputy chairman of A&L, expressed delight at the appointment of Sir Derek: "We believe his leadership qualities, business acumen and strategic thinking will be a tremendous asset to the group." Sir Derek was chairman of the fund management business of insurer Prudential between 1996 and 2000, having previously spent 24 years at investment bank Warburg. He has agreed to step down as deputy chairman of British Land and non-executive roles on the boards of Allied Irish Banks and online bank Egg. Sir Derek said: "I am delighted to be joining Alliance & Leicester and look forward to leading the board as the group continues to implement its coherent strategy for growth in both its retail and wholesale businesses." Mr Windeler, who was paid £394,000 last year, has been a director of A&L since 1995 and chairman since 1999. | 
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